Listening to the [[LEH]] call, I can tell you that firm is fucked, for quite awhile. Thus far, they’ve raised over 12 billion dollars (2008) in new capital, yet the firm continues to struggle with its balance sheet.
As a result, they have de-leveraged their balance sheet to 22:1. However, it’s worth noting, the graspy voiced moron of a woman on the call suggested they may up their leverage in the future. Their book value, which is a moving target, is now $33. Their hedges did not work, over the past quarter. And, finally, Lehman’s level three assets have not gone down.
To sum things up: LEH was “scared straight” and sold out of a lot of positions, in order to reduce risk. Ironically, their hedges, that are meant to reduce risk, actually increased risk over the last quarter— resulting in retarded losses. The fact that LEH was a monster seller of assets this quarter, means [[MER]], [[MS]] and [[GS]] are just sitting there with their fucking thumbs up their asshats.
With regards to other banks:
[[WM]] has slipped down the sewer pipe. Following “Wamu” is [[FED]], [[PMI]], [[ABK]], [[MBI]], [[RDN]], [[DSL]] and [[UBS]].In general, banks are being walloped today. Stay away.
On the long side, I really like [[RIG]] here. The stock has been beaten up, because fucktards with jelly on their bifocals have been selling it. I like it, up to $155.
Also, I like [[FTK]], [[FXP]], [[SRS]], [[NOV]], [[PCZ]] short [[CHL]], short [[LFC]] and short [[COWN]].
The market looks like shit on a skateboard, rolling down a garbage heap of molded salmon.
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